Singapore central bank seeks to regulate credit bureaus

SINGAPORE Aug 12 (Reuters) - Singapore's central bank on
Tuesday said it is seeking public feedback on a draft bill aimed
at policing the way credit bureaus handle consumers' financial
history data.

Credit bureaus compile data such as a person's borrowing
history which banks and other financial institutions use to
decide whether and how much to lend.

The Monetary Authority of Singapore (MAS) is proposing to
license credit bureaus and subject them to regulatory
requirements.

"A key focus of these requirements will be for credit
bureaus and their members to ensure data confidentiality,
security and integrity," the MAS said in a statement.

The draft bill includes regulation on how bureaus store
their data and obligations to promptly correct any mistakes in
their records

The United States similarly regulated credit bureaus in 2012
after the financial crisis prompted banks to become increasingly
reliant on their data when making lending decisions.

The MAS's bill also proposes giving consumers the right to
obtain free copies of their credit reports from banks or credit
card companies after having a credit application approved or
rejected.

Consultation on the bill will run until Sept. 12. It will
need to be approved by parliament before it can be signed into
law.
(Reporting by Aradhana Aravindan and Rachel Armstrong; Editing
by Robert Birsel)